Taxes and VAT

Configure tax rates and VAT settings for your bookings, products, and invoices.

Sailia supports tax and VAT configuration through accounting categories. When you connect a bookkeeping tool like Xero, each product category is mapped to a tax rate, ensuring your invoices and financial reports reflect the correct tax amounts.

How taxes work in Sailia

Tax rates are not applied directly to individual products. Instead, you assign products to accounting categories, and each category has an associated VAT rate and Xero account code. This keeps your tax configuration centralized and consistent.

Concept	Description
Accounting category	A label you create (e.g. “Activity income”, “Equipment hire”, “Food and drink”)
VAT rate	The tax percentage assigned to the category (e.g. 20%, 5%, 0%)
Xero tax type	The Xero tax rate name that the category maps to
Xero account code	The Xero account where revenue is posted
Xero item code	An optional Xero inventory or service item linked to the line item
Xero tracking category	An optional tracking dimension for departmental or project-based reporting

Set up accounting categories

1. Open accounting settings

   Navigate to Settings > Integrations > Xero and open the accounting categories section.

2. Create a category

   Add a new accounting category with a name, VAT rate, Xero tax type, and Xero account code. You can optionally assign a Xero item code and a tracking category for more detailed reporting.

3. Assign products to categories

   For each activity, shop product, membership, or activity pass, select the appropriate accounting category in its settings.

Products that support accounting categories

Product type	Where to assign
Activities	Activity settings page
Shop products	Product details page
Memberships	Membership plan settings
Activity passes	Pass settings page
Gift cards	Mapped separately in Xero settings — see gift card mapping

VAT on invoices

When Xero accounting sync is enabled, each Stripe payout generates a Xero invoice (and a separate credit note for any refunds) that includes:

• Line items grouped by accounting category
• The correct VAT rate on each line
• Stripe fees mapped to a dedicated account code
• Optional item codes and tracking categories on each line item
• A CSV attachment with the full transaction breakdown

If a product does not have an accounting category assigned, its revenue still appears in Xero but without specific tax categorization. Assign categories to all products for accurate tax reporting.

Gift Aid for donations

If you accept donations and your organization is a UK-registered charity, you can enable Gift Aid to reclaim an additional 25% from HMRC on qualifying donations. Gift Aid eligibility is tracked per donation and included in your donation exports.

Exporting tax data

You can export transaction data for tax reporting from the financial dashboard:

• Payout exports include fee breakdowns and net amounts
• Basket exports include individual line items with product categories
• Donation exports include Gift Aid status for each donation

These exports are available as CSV files that you can provide to your accountant or import into bookkeeping software.

Troubleshooting

Products showing incorrect VAT rate in Xero

Check the accounting category assigned to the product. Open the category settings and verify the VAT rate and Xero tax type are correct. Changes apply to future payouts — existing invoices in Xero are not retroactively updated.

Missing tax breakdown on Xero invoices

Ensure all products have an accounting category assigned. Products without a category are grouped as uncategorized revenue. Assign categories and the next payout sync will include the correct breakdown.

Related guides

Xero accounting sync

Connect Xero and map accounting categories.

Financial reporting

Export transaction data for tax and compliance.